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Tuesday, December 4, 2012

Most so-called "Entitlements" are really "Wage Subsidies"

For the past 40 years our politicians in Congress have allowed the government (us) to subsidize the wages of workers at large corporations -- those companies who have refused to pay a fair living wage to their employees -- and it's mostly middle-class Americans who pay for this "wage subsidy" (food stamps, etc.) -- all that "free stuff" that is needed by poorer Americans. Read >>> The Makers and Takers: And Republican Bullshitters

Keep in mind, almost 50% of all Americans earn LESS than $27,000 a year (this is the 47% that Mitt Romney referred to). Those who rely ONLY on Social Security (etc) and don't pay FICA taxes, aren't included. See the data here at the Social Security website.

I'm guessing that it's almost closer to 60% of all Americans who have a "total personal income" of less than $27,000 a year (that's the poverty rate for a family of four). Compare that to the average monthly Social Security payment of $1,111 a month -- that's only $13,332 a year. The average military pension is much higher, and they receive Social Security too (as well they should).

The Fiscal Cliff is a Man-Made Farce

House Republicans have made a $2.2 trillion counter-offer to the White House on the "fiscal cliff" negotiations that DOES NOT raise tax rates on the top 2% of households who earn over $250,000 a year.
The House Republican's Paul Ryan-Mitt Romney style plan DOES include:

their old plan of $800 billion in tax "reforms" (but won't give details, such as mortgage deductions);

their old plan cuts $600 billion in health care benefits to people (not providers);

their plan cuts another $600 billion in discretionary and mandatory spending;

and it doesn't include any cuts at all in defense spending.

In other words:

the House Republicans do not believe that Obama has won the election and has a mandate;

the House Republicans do not want to abide the will of the America people;

the House Republicans will do everything they can to protect the richest Americans and largest corporations:

the House Republicans will still throw the middle-class, working families, the unemployed, and the poor under the bus.

The House Republicans have made no sane, let alone credible, counter-proposal to Obama's plan.

The House Republicans are still saying that Obama's plan raises taxes on the "job creators", but the "job creators" have had the Bush tax cuts since 2001 and 2003 -- so where are the jobs? And Obama extended the Bush cuts for two more years in 2010. Obama didn't RAISE taxes on the rich, he allowed the Bush tax cuts to continue for everybody.

The Bush tax cuts were created by the Republicans, and the Republicans designed the Bush tax cuts to expire at the end of 2010. Obama allowed the Bush tax cuts to continue for TWO more years in exchange for the funding of 99 weeks of extended unemployment benefits for ONE more year.

The Bush tax cuts expire at the end of 2012. This time around Obama wants to extend the Bush tax cuts only for those households who earn LESS than $250,000 a year (and for the top 2% up to their first $250,000) --- to help pay down the federal deficit that the Republicans say are so concerned about.

Let's look at a few basic facts as to the federal deficit:

The History of Poor Working Americans: 1973 to 2012

Over the last 40 years, millions of good-paying jobs were out-sourced by large American corporations to places like China for cheaper labor. Their reason was, or so the CEOs claimed, was because they had to increase the value of the company stock for their shareholders. Most of the shareholders in the larger companies are big banks (and many are also on the board-of-directors of the company). And many people who sit on the board-of-directors of these large corporations also sit on the board-of-directors of the big banks. The top 1% has a very exclusive club.

The shareholders that the CEOs say they are so concerned about, aren't the average day-traders sitting at home on their computer; nor is it grandma, who holds 100 shares of APPLE in her IRA retirement account. The shareholders they are referring to are the big banks, hedge fund managers, and themselves!

Entitlements aka Wage Subsidies

The "entitlement" programs, such as TANF (welfare) and food stamps, have shot up because more and more
American workers find themselves working at lower-paying part-time jobs in the service industry, working at places like Wal-Mart and McDonalds; and they don't earn near enough to pay for the essentials of living (remember, the good-paying jobs were out-sourced to China by large American corporations.)

Special Tax Breaks for the Rich

Large American corporations spend millions of dollars lobbying Congress for special tax breaks (instead of giving their employees fair raises) and for less government regulations (such as worker's rights). The Republicans also advocate ruthlessly for "Right to Work States" (to bust labor unions) to keep wages very low and to keep the minimum wage as low as possible (Who can live on the current $7.25 an hour?)

For the past 40 years many large American corporations on the Fortune 500 List have paid an average EFFECTIVE tax rate of only 18-22% on average (not the 35% STATUTORY RATE), and paid their workers sub-standard wages. They have the best of both worlds: They pay low wages and pay less taxes to help fund such programs as food stamps that low-wage earners need (I call this Wage Subsidies).

The Republicans also want to privatize Social Security, even though it doesn't contribute at all to the federal deficit (it's funded by FICA taxes). But the Republicans REFUSE to eliminate the $112,000 CAP that the top 2% doesn't have to pay in Social Security taxes. The rest of use pay this tax on 100% on ALL of our earnings.

Who's at Risk? Old People or Rich People?

The Republicans don't want to tax income derived from stocks and dividends at the same rate as regular wages (currently the top 2% only pays 15% on their "investment income", even though for most, it's their ONLY source of income). Their argument is that "seniors citizens" would be hurt by higher taxes on capital gains and dividends if they relied on this income. Do you realize how much principal (actual money in the bank or invested) that one would need to "rely" on this income to pay their monthly bills?!?!?!?

If the Republicans were sooooooooooooooooo concerned about ordinary old people, why do they want to cut their Social Security and Medicare "BENEFITS", and ALSO raise the age for eligibility? How may people in the top 1% will have to work until they are 70 years old, or until the day they die, just to pay for a roof over their head, heat, and food? Zero! And the rich live longer too!

The Republicans continue to protect the wealthy at the expense of the masses...so I always wonder why so many regular working Republicans always vote for Republicans candidates...WHY DO THEY ALWAYS VOTE AGAINST THEIR OWN SELF-INTEREST?!?!?

No one earning less than $250,000 a year should NEVER, EVER, vote for any Republican candidate at the local, State, or federal level of government. Why would they?

The Fiscal Cliff
The Fiscal Cliff is a man-made farce to scare regular working people into thinking that they must compromise with the ultra-wealthy "job creators" who have been raking in record earnings.

The Very Simple Solution

Jump off the fiscal cliff!

Just let the Republican-created Bush tax cuts expire, then someone in Congress can introduce a brand new spanking tax bill that LOWERS taxes for EVERYONE....up to $250,000 a year.

Then Obama won't be RAISING taxes on anybody, he'll be CUTTING taxes for everyone (up to $250,000).

P.S. I used to think that Senator John McCain was once an honorable war hero. Now I think he's mean and selfish asshole.

Blogster-at-Large

Bud Meyers writes about the economy, politics, Social Security, corporate outsourcing, labor statistics, the REAL unemployment rate, taxes and tax evasion, government and corporate corruption, and the plight of the long-term unemployed.